The Different Ways Crypto Assets Are Stolen and How to Keep your Wallets Safe

By Srikanth
6 Min Read
The Different Ways Crypto Assets Are Stolen and How to Keep your Wallets Safe 1

The uses and purchase of cryptocurrency have grown over the years and so also is the need to secure it. This is because the surge has been drawing both cryptocurrency investors and traders, and also cyber criminals. Hence, the need for crypto recovery services.

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For over a decade, there have been multiple reports of cryptocurrency crimes such as scams, theft, fake transactions, etc. And this has led to a huge loss for so many investors. It was discovered in 2019 that about 130 million dollars’ worth of cryptocurrency was stolen from cryptocurrency wallets and exchange platforms.

How are cryptocurrencies kept?

Cryptocurrencies are usually kept in a digital wallet, and this wallet can be likened to our wallets that we use to store our fiat currencies and credit cards. The difference is that this wallet can only be accessed through a private key. These private keys can either be stored on hardware or software.

This crypto wallet private keys can also be stored on a mobile device, laptop, desktop, tab, or written in a journal or book. The most important condition is that it must be kept safe. This is because it is the main access to people’s cryptocurrency wallets and if stolen or misplaced, cybercriminals can gain access to your account easily.

How are crypto assets stolen?

Crypto assets or cryptocurrencies are stolen when a cybercriminal gains access to your cryptocurrency wallet through your private key. This is because, as stated earlier, your product key guarantees free access to your cryptocurrency wallet. Therefore, it can be used for fraudulent activities like money laundering or stolen completely. 

What are the different cryptocurrency scams?

There are different cryptocurrency scams and as an investor or trader, it is important that you are aware of them, so that you can avoid them. The main goal should be keeping your private keys safe and secure from cyber-criminals, so as to protect your cryptocurrency wallets from being hacked or stolen. You can also make use of crypto recovery services

Some of the cryptocurrency-related scams include sim swapping, airdropping fictitious tokens to your wallet, buying Google Ads that appear when people search online for popular crypto wallets to draw investors’ attention, creating fake accounts across social media platforms, and claiming to be crypto influencers or celebrities to scam unaware investors.

How to keep your crypto wallets safe?

There are numerous ways to protect your crypto wallets and crypto recovery services, some of which are:

Use a strong password

It is always advised to avoid using a similar password that you have used across other platforms for your digital wallet. This is because it can easily be decoded and stolen, and you must take security seriously. Also, make sure you implement two-factor authentication and regularly change your passwords in case a service is breached.

The two-factor authentication will help you get notifications when someone is trying to hack into your wallet. Using a password manager can also help to automate this process and save you a lot of time.

Use a cold wallet

This type of digital wallet is not connected to the internet and is shielded from cyberattacks. Keeping your private keys in a cold wallet, also known as a hardware wallet, is the safest choice because these wallets are usually encrypted. Cold wallets look like USB drives, and it is more like a physical wallet for your cryptocurrencies. Although it has its own risk, it is much more secure than other wallets, especially when you lose the private key, but then you can make use of crypto recovery services.

Use VPN or a secure internet

VPN helps you change your IP address, and location, and this helps you keep your activity online safe and secure, and free from cybercriminals. If you do not have a VPN, then make sure the internet connection you are using is secure. Also, as much as you can avoid using a Wi-Fi network when assessing your digital wallet, this helps to secure your account from threats.

Be cautious of cryptocurrency exchange sources

If you are a cryptocurrency investor or trader, be careful enough to spot cryptocurrency exchange vendors that are unreliable and untrustworthy. The rule is, if it is too good to be true, avoid it. Therefore, before making any exchange ensure you verify their sources, read reviews, and ask questions from reliable sources.

Have multiple wallets

This majorly involves not putting all your coins in one wallet, since there is no limitation on the number of wallets you can have, you can diversify your investments into separate wallets. Just like your physical currency, you can maintain one wallet for your day-to-day transactions and secure the rest in another wallet or different wallets. Brave has a great article if you would like to learn more about and compare other crypto wallets. 

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